SUSTAINABILITY REPORT 2024

Supplement to the integrated annual report for the year ended 30 September 2024

Water and effluents

Our interactions with water span multiple stages of the supply chain. In agriculture, water is essential for irrigation, while fertilisers and pesticides present pollution risks. In manufacturing and processing, water use is high, particularly in plants producing "wet products", where untreated wastewater can lead to pollution. Although water is not directly consumed in packaging production and distribution, these stages contribute indirectly to water use and pollution risks, including those from packaging material production and refrigerant leaks. Consumer use of our products also involves water, though pollution at this stage largely depends on local water treatment capabilities. Finally, improper disposal of product and packaging waste at the end of their life cycle can lead to water contamination.

Water scarcity is a critical issue where we operate in South Africa, with approximately 74% of our facilities located in water-stressed catchments. Water security poses a strategic risk for our operations, closely linked to climate change and further compounded by infrastructure collapse in some municipalities where our manufacturing facilities are based. In 2024, infrastructure failures led to frequent water supply disruptions, prompting us to procure water deliveries via tanker services at higher costs.

Management

Our approach to water management is grounded in compliance with the National Water Act and municipal by-laws, which set freshwater allocations and effluent discharge limits. Climate change and water stress are increasingly shaping our strategy as we work to understand our risk exposure and address infrastructure challenges.

In 2024, we completed a water-risk assessment that identified erratic supply, reliance on tanker services, deviations from SANS 241 standards, low water pressure and leaks as key operational risks. Aging infrastructure remains a challenge, with underground leaks impacting water consumption at two manufacturing units. Additionally, heightened hygiene standards for food safety, combined with shorter production runs, have led to increased water usage. Addressing these issues is a priority for 2025.

We set annual goals at the start of each financial year, informed by our 2030 target, recent performance, and planned initiatives. Our 2030 target is a 30% reduction in water intensity (kl/tonne) from a 2019 baseline, with an annual target for 2024 of an 11% reduction in group-wide water intensity. While we have improved water management across many sites in recent years, achieving the proficiency needed to scale our efforts strategically remains a work in progress.

Water consumption

We routinely track water usage at the site level, with daily measurements across all sites to quickly address anomalies, alongside weekly reporting and monthly performance reviews. Our process optimisation department leads water-use reduction initiatives, actively identifying and implementing improvements across sites. Water-use intensity is highest at our S&T, Chococam, Home, Personal Care & Baby, LAF, Musina and Boksburg sites. Limited electronic metering and reliance on manual processes remain key constraints to achieving consistent process and performance improvements.

Effluent discharge

In South Africa, manufacturing plants must legally hold permits for effluent discharge, with higher public water-treatment levies applied to lower-quality effluent. Our effluent is tested by accredited labs, and our 2024 discharge levels remain in line with local manufacturing standards. Following this year's water-risk assessment, we have initiated a review of our effluent treatment processes to align with the SANS 241 standard, prioritising grey water reuse in our operations where feasible.

We made significant strides in effluent management in 2023, and this will remain a priority in 2025. An effluent treatment upgrade at our Ashton facility, initially planned for 2024, is now included in the 2025 capital expenditure budget. We are also evaluating recovery technologies at high water-use sites and will conduct further cost-benefit analyses to explore potential solutions.

Performance

In 2024, our total freshwater consumption was 3 360 072 kl, including tanker water trucked to site as a result of municipal water supply challenges. We recorded a 5% decrease in total water consumption from the previous year, and a 3,8% increase in freshwater intensity (kl/tonne). We did not achieve our annual target for reducing water use intensity in line with our 2030 target.

Our 2024 water consumption
Total water consumption (kl)  
2022* 3 435 886
2023* 3 538 496
2024 3 360 072

*  Our 2023 and 2022 total water consumption figures have been restated this year, due to a calculation error picked up during this year's reporting cycle